Dictionary of Procurement Terms

A federal agency of the U.S. Commerce Department that provides access to census figures that can be helpful for supply management strategic planning. It lists a host of demographic data, including median household income, education, and population statistics.

An organizational structure in which the rights, powers, duties, and authority relating to procurement are vested in the chief procurement officer (CPO). While the CPO may delegate some of these powers to others, the final authority resides with them. See also: Decentralized Purchasing.

Transportation/carrier rates are quoted in Cwt., which is determined by dividing the actual weight in pounds by 100.

A document submitted by a supplier or manufacturer that gives the buyer with a written affidavit that the goods or services delivered fulfill the contractual requirements.

A supply management document prepared by the receiver of goods, establishing that the material delivered and received was damaged. The document includes a detailed description of the damage and the number of items damaged.

A document that may be required, usually by public purchasers, affirming that the offer is made freely and without collusion with another offeror.

A document required by customs officials that identifies the country of origin of imported goods and is certified by a U.S. consular official.

Contractor certification that to the best of the contractor’s knowledge and belief, the cost or pricing data submitted is accurate, complete, and current as of a mutually determined date prior to the date of the pricing of any contract, change order, or modification.

A financial instrument whose value is guaranteed by the financial institution upon which the check is drawn. In some cases, it may be used in lieu of a bid bond as a form of bid guarantee.